Banks hit customers in search for profits

Santander have switched almost 2m account holders to a zero-interest deal while increasing overdraft charges

Experts warn that banks are looking to boost profits at the expense of customers (Getty)

MILLIONS of customers at one of Britain’s biggest banks have seen returns on
their cash cut to zero and charges increased if they go into the red.

Santander has forced almost 2m customers who were being paid 1% on their
current account balances on to the Everyday account, which pays no interest.

The move has affected those with a Preferred In-Credit Rate account, or a
Preferred Overdraft Rate, Premier Direct or Premier 21 deal. All were no
longer available to new customers before the transfer.

Customers had been signing up to these accounts since 2008 to take advantage
of perks including an eye-catching 6% interest rate on balances of up to
£2,500 for the first year.

Santander has also increased its overdraft charges for 260,000 of these
customers in the Preferred Overdraft Rate and Premier 21 accounts. Until
now, those who used an unauthorised overdraft on these accounts could be